Because cryptocurrency has become so popular over the last few years a bunch of great Australian based cryptocurrency exchanges have popped up to make it super easy to buy Bitcoin.
Here I am going to outline a step by step guide using our exchange of choice Swyftx (Australian exchange that is giving $10 to every new customer). They're our top choice for Australians and the process is nearly identical on mobile.
Step 1 - Open a Swyftx account
Simply go to https://trade.swyftx.com.au/register/ and fill out the short form.
Once you click complete, you will be instantly brought inside Swyftx and see your dashboard.
Step 2 - Verify your identity
Once inside navigate to the left hand side of the screen and click 'Profile', a dropdown menu will appear, click 'Verification'.
Follow the prompts and verify your mobile, email and ID. It shouldn't take more than a few minutes, its easy and straight forward.
Step 3 - Deposit into your account
After verification is complete navigate to 'Trade' on your left hand menu (same on mobile and app). When the dropdown menu appears select the 'Deposit' option.
You have a few options to choose from here; POLi (Instant), PayID (Instant), OSKO Transfer (Instant), Bank Transfer (3 - 6 hours), Credit Card (30 minutes - 1 hour).
The easiest and most popular is a bank transfer using OSKO, which is a simple transfer using BSB and Account number, the same as when you're transferring to your friends.
You can see the details above. This is the method we used and it took less than 1 minute to see our $100 appear in our Swyftx account.
Step 4 - Choose base currency
Swyftx allows you choose your base currency which means you choose which currency you manage your account it. Its common to trade assets based of other assets like Bitcoin, Ethereum, AUD or USD.
I recommend choosing USD because Swyftx automatically converts your AUD into USD anyway (there is a way larger pool of USD to crypto trading going on so it means better prices). This way you will see all the true values of your money, the fees being charged, existing balance ect. If you're more comfortable in AUD thats fine. This is not a big deal.
Step 5 - Entering the trade
Now its time to begin the actual buying process, navigate to the 'Trade' tab on the left hand menu, from the drop down menu select 'Buy'.
In the search bar below 'Trade' and above 'Assets' type in what asset you want to buy, since this is a tutorial on how to buy bitcoin we typed in 'BTC' which is the ticker symbol for Bitcoin. Select Bitcoin from the list of assets that show up.
Notice in the image there are a list of tab options above Bitcoin logo; Buy, Sell, Charts, Orders, Deposit, Withdraw and Info. Make sure you select the 'Buy' tab.
Step 6 - Select the trade type and amount
So now you can see the price of your desired asset (bitcoin) against your base currency (USD in our case). At the time of this the price was close to $49,000 USD for 1 Bitcoin.
So below that you have your four options on how to execute your trade. These are 'Market', 'Limit', 'Stop' and 'Recurring'.
Don't be intimidated, these are actually pretty simple. Market means you buy now at the market price, limit is a tool you would use if you are only willing to buy at a certain price, so for example lets say you were only willing to buy Bitcoin at $48k and not the current market rate of $49, you could set a limit buy order at $48k, so if and when the price of Bitcoin hit $48k your trade would automatically be executed. Stop is similar but in the opposite way, you set the price you want to automatically sell at, for instance you could set that you want to automatically sell all your Bitcoin when the price hits $55k, this would automatically be executed for you. Recurring is self exploratory, instead of buying at the market price right now, you can spread your buys across a particular time frame. This is called dollar cost averaging and its an investment strategy to reduce the volatility of the market for you.
For this tutorial we choose the most simple option which is market, which allows us to buy at the current market price.
The next thing we need to choose the amount we want to invest. Swyftx have made a simple tool which allows you to quickly select a certain percentage of your overall balance. If this is not for you, you can always choose to enter a specific amount.
If you remember we deposited $100 AUD earlier and then selected our base currency as USD so we simply selected the 100% option which auto filled the amount box to little over $75 USD.
After you have selected the amount you wish to buy then simply click the blue 'Instant Buy' button. You will then be faced with a confirmation pop up.
Here you can see the current market rate you're buying at again and the fee you will pay, you can see here we are paying a fee of 45 cent (USD) for a purchase of little over $75 USD.
Just hit the green 'confirm buy' option when you're ready to go.
Step 7 - Sit back and enjoy your Bitcoin
Congratulations, you are now the owner of some Bitcoin.
If you want to learn more about Swyftx then feel free to read our review on them where you can see exactly how they operate, how much fees they charge ect.
If you want to you want to explore other Australian crypto exchange options then feel free to read our guide on the best Australian crypto exchanges.
Any questions feel free to leave a comment below.
We recommend Swyftx for buying Bitcoin
Finding the best Bitcoin exchange in Australia is a great way to make sure you have a smooth and positive experience each and every time. The best advice is to make sure you always use a cryptocurrency exchange for any Bitcoin purchase you make. There are actually a large number of these exchanges available, which means you’ve got many different routes to pursue.
This type of exchange is under the jurisdiction of Australia’s financial intelligence regulator, which is called AUSTRAC. Now, that doesn’t guarantee the exchange has gone about getting their license, which is why it’s a good idea to look into it before using that exchange. As a newbie to Bitcoin, Swyftx is a great option for those needing a fiat-to-crypto gateway. The whole premise behind Swyftx is that it is user-friendly and always smooth, making for a simple process.
Another common question is whether or not it's legal to in fact purchase Bitcoin in Australia. You may be surprised to learn that Australia was actually among the first in the world, back in 2013, to give it the green light, which means that, yes, it is legal to buy it. In order to protect people, the country put into place various polices that are meant to keep things legitimate and regulated. These are the anti-money laundering (AML) steps.
Since its time of being legalized, it has gone through some changes, and as of 2017, it was designated as property. Until that point, it has been double taxed in the country, but now, thanks to that policy shift, it is only single taxed, falling under Capital Gains Tax (CGT). Now, if you're looking into mining Bitcoin, this is legal as well but there is one large stipulation - people must be sure to use their own computational and electricity power - or their own resources if you will.
As you start to dig a little deeper into Bitcoin and dip your toes into the world of cryptocurrencies, you'll quickly discover there are a number of digital crypto wallets out there. This can lead to the question of which one to choose from here in Australia? Experts tend to agree that a hardware wallet is the best option if you have any plans of long-term storage of your bitcoins. While online wallets may appear convenient and smart to use, the fact is that hackers can have a field day with them at your expense. It’s not something you want to be dealing with.
So, what makes hardware wallets a better option? These aren't actually attached to the internet so they aren't vulnerable to hackers. Another option is the internal wallet that Swyftx offers. This is ideal as a short-term solution.
Maybe you want to be able to use cash in order to make your purchase, and the good news is that it is possible in Australia to do this. In fact, there are a few really great ways to go about it, making it convenient and safe. Your options include:
- Using an exchange in Australia that features cash payments such as CoinJar and CoinSpot. These payments are known in the industry as "blueshift."
- Use what's called a peer-to-peer exchange. With this method, you will actually physically meet with a person (a peer), give them the cash, and they will purchase the Bitcoin for you. A popular route for this option is Local Bitcoins.
- Finally, you can deposit your cash in a Bitcoin ATM, which you can then withdraw from. This is done through what is called a liquid broker. That cash you withdraw can then be placed directly into your "wallet".
If you like the idea of being able to use a Bitcoin ATM but aren't sure if there are any available in Australia, the good news is that there are options. There are currently 41 different Bitcoin ATMs across the country, all of which can be located using FindBitcoinATM.
The number of available ATMs has been growing over the years and they are starting to spread to smaller cities. Originally, they could only be found in the big cities across the country, but thanks to their rise in popularity, this is changing.
Just because you want to get into buying Bitcoins, doesn't mean you feel like embracing all-digital aspects. What happens if you want to purchase bitcoins for cash? Let's face it, for many this is the most convenient, fastest, and most comfortable way to go about it. While it would be great to say there are tons of options, the fact is that peer-to-peer exchanges will be the only route you can use. You will need to meet up in-person with the individual who will take the cash from you in order to make the purchase.
If you don't like the idea of this option, you can locate a Bitcoin ATM and they purchase BTC from it. Tip - not all of these ATMs will accept cash, so be prepared with a different method of payment
Maybe you like the idea of staying anonymous and want to know if you can do so when purchasing Bitcoin in Australia. The best option in this case is to make use of the popular peer-to-peer exchanges, wherein you physically meet up with a person to give them the cash so they can make the purchase for you. With this type of transaction, you don't need any sort of documents like ID, so you can in fact stay anonymous. All you'll need for this option is to provide an email address.
Conversely, you can use trade on a centralized exchange by visiting a Bitcoin ATM. There are a number of these ATMs scattered across Australia. Just keep in mind that if you plan on making a fiat deposit, this is when you can no longer remain anonymous. You will in fact require some form of ID to do this.
Here's a really popular question, as people want to know just how much of that profit is theirs to keep. Back in 2017 the laws were changed for the better and they made it so that Bitcoin would be taxed under the Capital Gains Tax (CGT). Before that point, it was being taxed two times, meaning people were paying a lot more. Keep in mind that this CGT applies to the capital you make trading, selling, converting, exchanging, and gifting Bitcoin. It is rather sweeping, so it's smart to be prepared.
Of course, the notion of having profits taxed isn't new or unusual in the financial industry, it's just wise to be informed and know what to expect. If you want to keep up with trends, news, and changing policies, then you can visit the ATO website
In Australia, getting started with a cryptocurrency exchange is probably much easier than you would have thought. The good news is that anyone can start - you don't need any previous know-how or experience as newbies can easily get started. The best tip is to find a platform that is suited for beginners and is welcoming and approachable. You don't want to feel overwhelmed or out of your element. This is exactly why Swyftx is such a great option for beginners, as the platform is designed to be incredibly user-friendly, smooth, self-explanatory, and welcoming. Not only that, but you can perform crypto trades with fiat currency.
The way it works is that you make a deposit straight to your account using Australian dollars, and then you will be able to purchase Bitcoins. There is no third-party exchange involved, or having to mess with converting currencies. It's very fast, and best of all, it's very simple.
If you don't want to have to jump through hoops and waste all kinds of time just getting access to Bitcoins, then you will be happy to know you've got options. It's always best to use your debit or credit card on a crypto exchange if speed is your number one criterion. Your payment is collected immediately, which speeds up the process, but you will also want to look into any extra costs that this may result in. In general, you can expect a fee to be applied to the transaction somewhere in the ballpark of 4-5%. This may not be of concern to you, or it may seem too high and have you looking for other ways to get Bitcoin. Also, there is a transaction limit that will be applied, so you won't have unlimited access.
Here in Australia, there are also Self-Managed Super Funds (SMSF) that can be used with your Bitcoin. We suggest that you head to the Bitcoin SMSF so you can read up on what it is, and how to go about it.
So, now that you've got Bitcoins, what can you do with them? Can you convert them into cash? The answer is, yes you can, and this is actually the best way to get the value out of your funds. Right now, there are plenty of places that do accept Bitcoin as a form of payment, but that doesn't mean it is widespread. It is far from being mainstream and until that happens, you're better off converting it to cash.
Should you decide to go ahead and convert your Bitcoins to cash, you'll need to use a crypto exchange. There will likely be fees applied to the withdrawal you make, which is something to be aware of in advance. The funds will then be placed in your bank account.